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    Will GST Apply on UPI Transactions Above Rs 2,000? Finance Ministry Clarifies

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    Will GST Apply on UPI Transactions Above Rs 2,000? Finance Ministry Clarifies

    The central government has dismissed rumours that it is considering imposing GST on UPI transactions above Rs 2,000. The Finance Ministry has clarified that there is no such proposal under consideration at present, and reports about GST on UPI transactions are completely false.

    No MDR Charges on UPI Transactions

    The Central Board of Direct Taxes (CBDT), through a notification issued on December 30, 2019, removed the Merchant Discount Rate (MDR) on Person-to-Merchant (P2M) UPI transactions.
    This notification came into effect from January 2020.

    Also Read- GST Rate Changes for Some Goods and Services: Check List

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    Currently, there are no MDR charges on UPI transactions. Therefore, there will be no GST on UPI transactions either. Person-to-Merchant UPI transactions refer to payments made between a customer and a merchant.

    As Senior Head Writer at Flickonclick, he specializes in news coverage across entertainment, sports, and trending topics. With years of experience in digital journalism, he focuses on delivering timely and accurate stories that are easy to understand. His approach to writing is straightforward—breaking down complex news into clear, engaging content that keeps readers informed. Whether it's breaking entertainment updates, sports highlights, or trending headlines, he ensures every article is well-researched and reader-friendly.

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